Orbis Announces Intention to Vote against Klaus Kleinfeld for Reelection

Orbis does not believe that Arconic can reach its potential under current leadership

SAN FRANCISCO--()--Orbis Investment Management Limited (“Orbis”) is a global investment firm with over $30 billion in assets under management by it and its affiliates. Through the Orbis family of funds, Orbis has been a shareholder in Arconic, Inc. and its predecessor company, Alcoa Inc., since 2013.

“Unfortunately, we do not believe that Arconic can achieve its long-term intrinsic value under the leadership of Klaus Kleinfeld”

At Orbis, we take a long-term approach to the stewardship of our clients’ capital. As Alcoa shareholders over the past several years, we have spent significant time and resources to understand its businesses, and have regularly interacted with senior management. We invested in Alcoa, and remain invested in Arconic, because we believe in its potential and that its market valuation is substantially below the company’s long-term intrinsic value.

“Unfortunately, we do not believe that Arconic can achieve its long-term intrinsic value under the leadership of Klaus Kleinfeld,” said Adam R. Karr, Partner at Orbis. “During Kleinfeld’s tenure we have witnessed a track record of poor execution, value-destructive capital allocation, undisciplined spending, mismanagement of expectations, and extraordinary share price under-performance. Consequently, Orbis intends to vote against his re-election as Chairman and Director of Arconic. We do not reach this decision lightly, but feel compelled to do so on behalf of our clients.”

Notes to Editors:

Orbis was founded in 1989 and manages over $30 billion across a range of long-only equity and absolute return strategies using a fundamental, long-term and contrarian investment philosophy. Its flagship Global Equity Fund has outperformed its benchmark by approximately 6% per annum net of fees over nearly 25 years. All fee structures are performance-based and the firm’s employees, management and owners are significant investors in the Orbis Funds. Headquartered in Bermuda, Orbis employs over 300 professionals in nine global locations. www.orbis.com


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